Break-even oil price bogeyman stalks gulf economies

Gulf economies are buoyant. Despite regional trouble spots from Bahrain to Egypt to Syria, Gulf executives remain confident. But there’s one cloud peeking over the horizon that analysts and economists are starting to take note of: the rapidly rising “break-even” points of the oil producers whose revenues are driving the regional economy, including its burgeoning non-oil component.
Break even is the oil price point at which revenues from oil sales cover the cost of imports in the various Gulf countries. During the lean 1990s, when oil prices fell well below $50 per barrel, Gulf countries whittled their government budgets down to a nub and tightened their belts. An oil price between $45-$60 a barrel, depending on the country, was enough to break even……………………………………Full Article: Source